Read The Times Australia

Daily Bulletin

Government accelerates warship building in bid to prop up South Australian economy

  • Written by: The Conversation
imageTony Abbott has announced a commitment to defence shipbuilding in South Australia.Ben Macmahon/AAP

The government has unveiled a centrepiece of its coming Defence White Paper, bringing forward a A$40 billion program to build surface warships, centred on the economically ailing state of South Australia.

The acceleration is aimed at saving jobs that would have otherwise been lost on the original timetable.

During an intensive campaigning visit to SA – where unemployment is above 8% and the Coalition’s stocks are at rock bottom – Tony Abbott said that from 2020 onward those employed continuously in surface naval shipbuilding would climb to about 2500.

Most of the workers would be in Adelaide “because Adelaide is where the major shipbuilding infrastructure is”.

But senator Nick Xenophon, who plans to run lower house candidates in the election, immediately questioned the credibility of the government’s commitment, given that it appeared to be walking away from a 2013 election promise by its then-defence spokesman David Johnston to build 12 submarines in SA.

Where the submarines are to be built is yet to be determined. However, the government has pledged there will be substantial work, especially from maintenance, in SA.

The government said that over the next 20 years, $89 billion would be invested in ships and submarines for the Australian Navy.

In Tuesday’s announcement, the Future Frigate program to replace the ANZAC class frigates will be brought forward to start in 2020, three years earlier than scheduled under Labor’s Defence Capability Plan.

Construction of Offshore Patrol Vessels, or Corvettes, to replace the Armidale class patrol boats, is to be brought forward by two years, to begin in 2018.

The government says that in the short term, the bring-forward will sustain around 1000 jobs that would otherwise have been lost.

“It should mean that at no stage does the total number of jobs in naval shipbuilding in Australia drop below about 1000, so that when we do start building up again to 2500 from 2020, it’s not the cold start that would otherwise be the case,” Abbott said.

But in the meantime there will be a dip in employment from the present level of about 2000. Abbott said the government could not entirely make up for the neglect of decision-making between 2008 and 2013.

Defence Minister Kevin Andrews said that “never before in the history of federation has a national government announced a continuous ship build in Australia”.

While the major surface shipbuilding will be in Adelaide, the subordinate yard could be in SA or elsewhere, for example at Williamstown in Victoria.

In relation to the submarines, Abbott said the government had asked the various potential partners to give a price for a domestic build, a hybrid build and an offshore build.

Xenophon, who polled nearly two quotas at the Senate election, is targeting in particular the Liberal seats of Hindmarsh, Boothby, Sturt and Mayo. The latter two seats are held by ministers Christopher Pyne and Jamie Briggs respectively.

Xenophon said the government could not expect to be believed on the frigates until it delivered on its promise to build the $50 billion submarines in SA.

Xenophon said the promised frigate build was at least two elections away and the announcement was “alarmingly short on detail”.

Labor defence spokesman Stephen Conroy said that “what we’re seeing today is a circus in South Australia to protect Tony Abbott’s job and Christopher Pyne’s job”.

Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond the academic appointment above.

Authors: The Conversation

Read more http://theconversation.com/government-accelerates-warship-building-in-bid-to-prop-up-south-australian-economy-45669

Business News

The strategic rise of Bali as Australia’s next essential healthcare support hub

As Australian healthcare providers grapple with unprecedented operational bottlenecks, a new nearshore model is quietly transforming patient care delivery. Forward-thinking organisations,  including...

Daily Bulletin - avatar Daily Bulletin

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

Practical Ways Australian Workplaces Can Reduce Operating Costs

Reducing business costs doesn’t always mean cutting staff, shrinking services or making the workplace feel bare-bones. In many cases, the smarter savings are hiding in everyday operations: the light...

Daily Bulletin - avatar Daily Bulletin

Executive Recruitment Solutions That Help Organisations Secure Exceptional Leaders

Leadership has a direct impact on organisational performance, employee engagement, strategic growth, and long-term success. Businesses operating in increasingly competitive environments require experi...

Daily Bulletin - avatar Daily Bulletin

Why A WooCommerce Website Designer Matters For Online Growth

Running an online store today requires more than simply listing products and waiting for customers to arrive. Businesses need a website that is fast, reliable, easy to navigate, and designed to suppor...

Daily Bulletin - avatar Daily Bulletin

Turning Your Empty Tables into Revenue

The rise of AI demand tools in hospitality, the EatClub–CommBank partnership, and seven trends reshaping Australian dining  A growing number of Australian venues are turning to AI-powered demand ma...

Daily Bulletin - avatar Daily Bulletin

High-Impact Dental Marketing Strategies That Are Driving Real Practice Growth Today

The landscape of dental practice growth in Australia has shifted dramatically over recent years. Standard, broad-spectrum advertising campaigns no longer yield the return on investment they once did. ...

Daily Bulletin - avatar Daily Bulletin

How Telematics Helps Australian Companies Improve Productivity

Operating a commercial fleet in Australia is a uniquely demanding endeavour. Between the sprawling urban sprawl of cities like Sydney and Melbourne and the immense, unforgiving stretches of the Outb...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Lighting Shop in Perth: How The Right Lighting Can Transform Your Home And Business

The right lighting can completely change the look, feel, and functionality of any space. Whether it ...

Traffic Light System Solutions For Safer And More Efficient Traffic Management

Modern cities and growing communities rely heavily on effective traffic management to ensure safety...

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...